You may feel this way all the time, but lets face it it does take a toll on us during the holidays. We all must be prepared to over these challenges during the holidays. Brace ourselves and control our shopping persona to not go overboard on the merchandise.
As I was reading this article, http://www.nytimes.com/2010/12/10/business/10shop.html?hp ( Our Christmas Shopping List, No Credit Slips) it really made me think how much using your credit card during the holidays can really ruin your credit long term. Not just ruining your credit but also putting you in debt.
The article was talking about a woman, Liz Gonzalez,40, who had problems with debt and paying off her credit card bills starting from two christmases ago. She kept charging all the gifts and it escalated into madness where she is currently still paying it off. She went through a divorce which brought more problems financially.
She decided to use cash this year so she can stick to her budget.
This is the time of year where stores and credit card companies are trying twice as hard to issue their credit cards. They are competing with each other and trying to give the consumers the best rewards, better than their opponents.
But the best way to stay clear of debt and ruined credit is to just use cash. The article was saying that cash would be the best way to stay clear of that for many reasons.
One being that you are staying on your budget, you don't have to worry about paying any interest, and of course going into debt and be paying for these gifts two years from now.
So as the holidays come closer, go into it with a specific budget, open an account specifically for those holiday gifts. It will steer you away from any later surprises in the mail.
The most important thing about the holidays isn't the gifts, even though that is what many of us are guilty for thinking about. It is the time to give, not physical gifts but the gift of yourself and your time. That would be the best gift of all.
2 comments:
It's pitiful, people going into debt over Christmas. Sure, it's the season of giving, but I believe that the world of consumers have misconstrued this idea. Are we supposed to give material objects, or love, support, grace, and appreciation? If I had to pick between the two, I would definitely pick the latter.
I am a fan of homemade gifts:) It is not about the money.
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